Sydney Park Fitness Gym has ($500,000) of 10-year bonds payable outstanding. These bonds had a discount of

Question:

Sydney Park Fitness Gym has $$500,000$ of 10-year bonds payable outstanding. These bonds had a discount of $$45,000$ at issuance, which was five years ago. The company uses the straight-line amortization method. The carrying amount of these bonds payable is

a. $500,000.

b. $477,500.

c. $455,000.

d. $545,000.

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